info@singaporecompanyincorporation.sg
Singapore Company Incorporation

Singapore Company Registration Services

  • Home
  • Services
    • Our Services
    • Company Incorporation Services
    • Relocation and Immigration Services
    • Accounting and Tax Services
    • Corporate Compliance Services
    • Offshore Incorporation Services
  • Learning Centre
    • Learn About
    • Singapore Company Setup
    • Trademark Registration
    • Immigration and Relocation
    • Corporate & Personal Taxation
    • Offshore Incorporation
    • Resources
    • Infographics
    • Comparative Reports
    • Frequently Asked Questions
  • Tools
    • Company Name Check
    • Tax Calculators
    • Corporate Tax Calculator
    • Personal Tax Calculator
  • Community
    • Get the Latest Updates
    • Blog
    • Press Releases
  • Contact
You are here: Home / Comparative Reports / Doing Business in Singapore vs. Malaysia

Doing Business in Singapore vs. Malaysia

June 23, 2014 IN Comparative Reports

In this comparative report, we look at the differences between doing business in Singapore and Malaysia.

This report refers to data from World Bank’s 2014 ‘Ease of Doing Business’ report and World Economic Forum’s Global Competitiveness 2013 – 2014 as well as 2014 Global Enabling Trade reports. It measures five indicators, namely company incorporation, corporate tax rate, foreign investment friendliness, intellectual property protection and workforce.

Overview

Malaysia has made significant economic progress and is now hot on the heels of its neighbour Singapore. The Doing Business report ranked it as the 6th easiest place to do business and the country has made stellar progress, especially in the areas of dealing with construction permits, getting electricity, getting credit and starting a business.

Furthermore, Iskandar Malaysia, just north of Singapore, is set to provide a hinterland for Singapore-based businesses. According to a news report on Today titled ‘S’pore, M’sia trade grows on Iskandar activities,’ Singapore businesses are encouraged to explore Iskandar as a place to expand their operations. Singapore is a major investor in the zone, having injected US$24 billion into projects there.

However, the GCI has cited inefficient government bureaucracy, corruption and poor work ethic in national labour force as the most problematic factors for doing business in Malaysia.

In general, Iskandar looks promising but Singapore is currently well-positioned to function as the shop front or headquarter for businesses in Asia.

World Bank’s Doing Business (DB) 2014
Singapore vs. Malaysia
Rank
Measure Singapore  Malaysia
Overall ranking 1 6
Starting a business 3 16
Dealing with construction permits 3 43
Getting electricity 6 21
Registering property 28 35
Getting credit 3 1
Protecting investors 2 4
Paying taxes 5 36
Trading across borders 1 5
Enforcing contracts 12 30
Resolving insolvency 4 42

Company Incorporation

The Doing Business report ranked Singapore 3rd worldwide in the category of starting a business. This was due to the procedures, timeframe and paid-up capital required to complete the business registration. Malaysia was ranked 16th, which is an improvement by 3 positions from its 2013 rank.

In both countries, 3 procedures are required to start a business. However, the process takes 2.5 days in Singapore and 6 days in Malaysia.

Malaysia has made significant improvements in terms of dealing with construction permits as well, jumping from 99th position in 2013 to 43rd in the Doing Business 2014 report. However, getting a construction permit is still faster in Singapore. According to the Doing Business report, it takes only 26 days and 11 procedures to build a warehouse in Singapore. A company has to undergo 15 procedures over 130 days in Malaysia to do the same.

Corporate taxation

The Doing Business report has ranked Malaysia 36th in the category of paying taxes. This represents a significant decline from its 15th position in the 2013 report. Singapore maintained its 5th position for its tax rates and tax filing procedures.

Both Singapore and Malaysia have attractive corporate tax rates. In Singapore, the marginal corporate tax rate is 17%, while in Malaysia, it is 25%. Both countries offer special tax rates for resident companies. In Malaysia, eligible resident companies enjoy a 20% corporate tax rate on the first MYR 500,000 during their first year of assessment (YA). In Singapore, eligible newly incorporated companies can claim full tax exemption on the first S$100,000 of chargeable income over the first 3 consecutive YAs.

In addition, companies make 13 tax payments a year and spend 133 hours a year filing, preparing and paying taxes in Malaysia. In contrast, Singapore companies make five tax payments a year and spend 82 hours a year filing, preparing and paying taxes.

For more details on tax rates in Singapore, please visit our page on Singapore taxation.

Foreign investment friendliness

In order to attract investments, a country should first have regulations to protect investors. In the Doing Business report, the Strength of Investor Protection Index measures the transparency of transactions, the shareholders’ ability to sue officers and directors for misconduct and liability for self-dealing. Singapore scored 9.3 out of 10 while Malaysia scored 8.7. This places Singapore in the 2nd position worldwide and Malaysia at a close 4th in the category of protecting investors.

In addition, Singapore’s greater emphasis on compliance as well as transparency will continue to ensure wealth protection for genuine investors. The ongoing efforts to improve financial reporting standards, fight wilful tax evasion and financial crimes, as well as to comply with international standards FATCA and BASEL III will also help to attract more bonafide foreign investments.

Intellectual property protection

Intellectual property protection is another factor that motivates investors to inject capital into companies and is crucial in an innovation and knowledge-based economy. The Political & Economic Risk Consultancy Report 2011 and the International Property Rights Index 2012 have formerly ranked Singapore as the top jurisdiction in Asia for intellectual property (IP) protection. According to the Global Competitiveness Report, Singapore is the second best in the world and first in Asia for IP protection. The GCR ranked Malaysia at 30th position.

WEF’s Global Competitiveness Index 2013 – 2014
Singapore  vs.  Malaysia
  Rank
Measure Singapore Malaysia
Overall ranking 2 24
Basic Requirements (60%) 1 27
Institutions 3 29
Infrastructure 2 29
Macroeconomic environment 18 38
Health and primary education 2 33
Efficiency Enhancers (35%) 2 25
Higher education and training 2 46
Goods market efficiency 1 10
Labor market efficiency 1 25
Financial market development 2 6
Technological readiness 7 51
Market size 34 26
Innovation and sophistication factors (5%) 13 23
Business sophistication 7 20
Innovation 9 25

Workforce

Malaysia has made great improvements in terms of labour market efficiency. According to the GCR, Malaysia has improved its score in 6 out of 10 indicators, and scored well in 8 indicators. As a result, it was ranked 25th worldwide in this category.

Nevertheless, Singapore scored very well in 9 out of 10 indicators, earning it the top position for ‘Labour Market Efficiency’. Both countries did not score well for women’s participation in the labour force. Singapore ranked 84th in this category, while Malaysia ranked 121st.

In a Nutshell

The above analysis confirms that although Malaysia enjoys close proximity to Singapore, it is still plagued by inefficient government bureaucracy, corruption and poor work ethic in national labour force. Furthermore, Iskandar region in Malaysia, just north of Singapore, is set to provide a hinterland for Singapore-based businesses adding to the city-state’s attractiveness. Additionally, better tax laws, more options for incorporating entities, robust IP protection and a business-friendly environment in general, gives the city-state an edge over its bigger neighbour.

You may also check our Frequently Asked Questions section for further information.

Read More » Press Release on Singapore vs. Malaysia Comparative Report


Incorporate a company in Singapore quickly and easily

Singapore Company Incorporation is the leading force in company registration in Singapore. With a gamut of services including Work Visas & Relocation, Accounting & Taxation, Business Licenses, Company Secretary and Trademark Registration, we are well-positioned to support your business.

Let Us Help You

Suggested Readings

SingaporeCompanyIncorporation.sg Releases Comparative Report on Doing Business in Singapore and Malaysia Doing Business in Singapore vs. USA Doing Business in Singapore vs. Australia Doing Business in Singapore vs. China
← Doing Business in Singapore vs. Vietnam Doing Business in Singapore vs. Australia →

Contact Us

  • This field is for validation purposes and should be left unchanged.

Our Services

  • Incorporate Company
  • Trademark Registration
  • Relocation and Employment Visas
  • Taxation & Accounting
  • Offshore Incorporation

CALCULATE YOUR TAXES

  • Personal Tax Calculator
  • Corporate Tax Calculator

Contents

Company Formation

  • How to Incorporate a Company in Singapore
  • Incorporation Service
  • Company Formation Package
  • Company Registration Singapore
  • Foreign Company Registration in Singapore
  • Offshore Company Formation
  • Setting up a Branch Office in Singapore
  • Business Incorporation Options
  • Singapore Company Name Check

Incorporation

  • Company Incorporation Singapore
  • How to Register Company in Singapore
  • Subsidiary Company Registration
  • Branch Office Registration

Immigration

  • Singapore Work Visas
  • Employment Pass
  • Entrepreneur Pass
  • Personalised EP
  • Permanent Residence

Tax & Accounting

  • Corporate Tax Guide
  • Personal Tax Guide
  • Goods & Services Tax
  • Bookkeeping & Financial Statements
  • Payroll Services

Corporate

  • Corporate Secretary
  • Business Licenses
  • Trademark Registration
  • Statutory Compliance
  • De-Registration/Strike Off

Tools

  • Company Name Check
  • Personal Income Tax Calculator
  • Corporate Tax Calculator

Copyright © 2025 Singapore Company Registration & Work Visa Specialists. All Rights Reserved. | Privacy Policy | Terms of Use